Map: These are the hottest real estate markets in 2026

Buyers may see a slight upper hand in 2026 as analysts predict a more balanced housing market, but they warn "it’s not off to the races" yet thanks to persistent high prices and mortgage rates. 

Realtor.com’s national housing forecast projects a slight rise in existing-home sales this year, "a sign that more buyers will be able to successfully navigate the market’s challenges." Here are other highlights from the report. 

The hottest real estate markets in 2026

Local perspective:

The Northeast U.S. will be a hotbed for the housing market this year, according to projections. These are the cities where real estate prices are expected to rise the most in 2026.

Here’s where home sales are expected to increase the most this year:

What will the market be like for homebuyers?

By the numbers:

Realtor.com’s national housing forecast predicts an average mortgage rate of 6.3%, "easing affordability pressures slightly," with home prices rising by 2.2%. Existing-home sales should increase about 1.7% to 4.13 million, slightly above last year’s 30-year low. For-sale inventory is up roughly 9% compared to 2025.

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For the first time since 2022, buyers are projected to spend less than 30% of their income on housing payments.

What they're saying:

"For homebuyers and sellers, the shift signals a more balanced market—one where price growth steadies, rate relief offers breathing room, and negotiating power tilts subtly toward buyers," Realtor.com says in the report. "Still, the improvement will be modest nationwide as familiar challenges—diminished affordability due to high prices and still-high mortgage rates—continue to weigh on home buyers."

What's next:

With 80% of homeowners reporting a mortgage rate below 6%, the rate "lock-in" effect has left many homeowners with "a strong reason to stay put." That’s changing slowly, but not significantly, in 2026.

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"This doesn’t mean that the housing market will be ‘easy’ for buyers, but we do expect to see more sales in 2026, a sign that more buyers will be able to successfully navigate the market’s challenges," the report says.

Dig deeper:

Renters, meanwhile, are also seeing a softer market, especially in the South and West.

What will the market be like for home sellers?

Big picture view:

The shift from a seller’s market to a balanced market will continue in 2026, and sellers should brace for "even further into balanced territory." Last year, we saw a larger number of sellers delisting their homes and walking away, a trend that could continue in 2026.

Sellers should be ready to "adjust expectations" based on the conditions of each market, and expect to cut prices more if you’re selling a lower-cost home. Price cuts are rare for homes listed for more than $1 million.

"Sellers who list, but are inflexible on price or other terms, may not find a buyer willing to meet them," the report says. "Fortunately, the lengthy average tenure among today’s homeowners suggests that many are in a position to walk away with good money if they were to choose to sell."

Read the full Realtor.com report here.